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Caixa Econômica Federal won the bidding process that BM&FBOVESPA held to license use of the BOVESPA Index for a new ETF based on IBOVESPA. The Exchange opened the proposals and announced the results of the process. Three institutions participated.
The Index Licensing Agreement shall be signed within the next 15 days. After the Securities and Exchange Commission of Brazil (CVM) and BM&FBOVESPA grant the due authorizations for the functioning and registration of a new ETF based on IBOVESPA, Caixa Econômica Federal will have 30 consecutive days to start trading the new ETF on the Exchange. The ETF based on the IBOVESPA reflects the performance of the 68 most traded stocks on BM&FBOVESPA.
ETFs are index funds traded on the Exchange like stocks and which replicate the composition of an index. An investor that buys a unit in an ETF is making a simultaneous investment in a share portfolio composed of companies in different sectors of the Brazilian economy, without having the buy the separate shares of the respective index.
Generally speaking, round lots are made up of 10 units with a management fee of under 0.75% and require an initial minimum investment that ranges from BRL 200 to BRL 1,000 (depending on the ETF that the investor selects), plus brokerage and custody fees. In April, the ETFs traded on BM&FBOVESPA totaled 73,632 transactions and a financial volume of BRL 2.69 billion.
BM&FBOVESPA trades 12 ETFs:
- BOVA11 which tracks the IBOVESPA;
- BRAX11 which tracks the IBRx-100;
- PIBB11 which tracks the IBrX-50);
- CSMO11 which tracks the consumer index;
- MOBI11 which tracks the real estate index;
- FIND11 which tracks the financial index;
- ISUS11 which tracks the Corporate Sustainability Index;
- GOVE11 which tracks the performance of companies that voluntarily adopt differentiated corporate governance standards;
- IDIV11 which tracks the Dividend Index;
- IMAT11 which tracks the packaging, wood and paper, various materials, mining, chemicals, steel and metal sectors;
- SMAL11 which tracks the performance of the index comprised of listed small caps; and
- MILA11 which tracks the performance of listed mid and large caps).
